Financial Capital. Data and Models

Götz Rohwer ist Professor für sozialwissenschaftliche Methodenlehre und Statistik an der Ruhr-Universität Bochum und seit Oktober 2012 emeritiert.

Prof. Dr. Andreas Behr lehrt Statistik an der Universität Duisburg-Essen.

1 Introduction 9
1.1 Markets, money, financial capita l9
1.2 Notations for models 11

2 Beginning with banks 15
2.1 Two money circuits 15
2.2 Banks’ deposit money 18
2.3 Usages of reserves 28
2.4 Zero-sum games and debts 32

3 Bonds 39
3.1 Some data 39
3.2 Orientation to returns 40
3.3 Government bond spreads 46
3.4 Financing of government debt 49
3.5 Appendix: Modern Money Theory 59

4 Tradable shares 63
4.1 Some data 63
4.2 Speculative pricing 65
4.3 Dividends 71
4.4 Real and virtual gains 76

5 Investment funds 83
5.1 Some data 83
5.2 Speculation with fund shares 85
5.3 Exchange-traded funds 89

6 Derivatives 95
6.1 Forwards and futures 95
6.2 Options 101
6.3 Credit default swaps 108

7 Financialization 115
7.1 Expansion of financial wealth 115
7.2 Inequality of financial wealth 139

References 150
Index 154